If the Market Price Is Below the Equilibrium Price, Which

question 244

Multiple Choice

If the market price is below the equilibrium price, which of the following will occur?

• A) Quantity demanded will exceed quantity supplied and the market price will eventually fall.
• B) Quantity demanded will exceed quantity supplied and the market price will eventually rise.
• C) Quantity supplied will exceed quantity demanded and the market price will eventually fall.
• D) Quantity supplied will exceed quantity demanded and the market price will eventually rise.

---

Definitions:

Step-Down Method

A cost allocation method used in accounting to assign service department costs to production departments in a sequential manner based on benefits received.

Administration Department

A sector of a business or organization responsible for administrating policies, procedures, and administrative support.

Information Technology

The application of computers, storage systems, networking components, and other tangible devices, frameworks, and methodologies to generate, manipulate, preserve, protect, and share every type of digital data.

Prenatal Care

Medical and healthcare provided to a pregnant woman before birth to ensure the health of both mother and baby.